Status Update

Jul 24, 2018

Good afternoon, ladies and gentlemen, and thank you for standing by. Welcome to CCR SA's conference call to discuss changes in CCR's Board of Officers. We would like to inform you that all participants attending the conference will be in a listen only mode during the Before proceeding, we would like to clarify that any statements that may be made during this conference call regarding the company's business prospects, projections and operational and financial goals constitute the needs and premises of CCR's management as well as information currently available to the company. Forward looking statements are no guarantee of performance. These statements refer to future events and therefore depend on circumstances that may or may not occur. Investors should understand that general economic conditions, industry conditions and other operating factors may affect the company's future results and may lead to results that differ materially from those expressed in such forward looking statements. I would like now to turn the call over to Mr. Arthur Piordo Filios CFO, and IR Officer of CCR. Mr. Arthur Thiodo, you may proceed. Thank you, operator. Good afternoon, everyone. Thank you for attending our conference call. Today, we have Mr. Marcos Macedo with us. We are here today to discuss specifically the changes in the Board of the company. First of all, a special thanks goes to CEO, Renato Vale, who will leave us on the 31st. Needless to mention the importance it has in making CCR a winning company. As we announced in the material fact of last Friday, these changes are a result of the process of restructuring that began in 2014 with the program for the identification and development of strategic leadership, which relied on the support of Frumacao Don Cabral. It's been 4 years of work, which is still underway. We also have the support and contributions of international consultancies regarding corporate structuring and management aspects. In terms of management, the process included a comprehensive evaluation not only of CCR's businesses, but also of our management staff. In this context, the Nava Turonada program was also created, which aims to provide and support guidance to employees, offering resources to executives in the transition phase of their life and careers in order to smoothly handle the completion of an important cycle as part of the company's history. In the corporate arena, the business divisions, CCR Rodovias B, CCR Rodovias BBR, CCR Mobilidague and CCR Aeroportes, They were created aiming at the specialization and segregation of the group of businesses. Asset transfers procedures are also being carried out for each of the business divisions. It's also important to highlight that all the changes announced on Friday were based on the appreciation of executives with experience in the company who are deeply familiar with the group and the market in which we operate. To ensure the objectivity of today's conference call, we ask that questions be addressed on the specific topic of changes to our Board of Officers. With that said, let's now open the Q and A session. Operator, please you may proceed. Ladies and gentlemen, we can now begin the question and answer session. The first question comes from Ed Broome from Santander. Good afternoon, Arthur. Thank you very much for taking our questions. I have two questions, if I may. I would like to know if the choice of the Narduvian has anything to do with the market in Brazil and the business nowadays in the primary market? And if there are relevant assets for sale in the secondary market? And if yes, is there any practical difference in terms of Leonard as the CEO that would make a difference as when he assumed his new position? And the second question I'll ask after you answer my first one. Thank you for the question. I think your question provides us with the opportunity to say that one of the major challenges that the company has ever faced is to expand which is to expand its portfolio considering that one of the main assets, one of the main concessions has remained relatively short. So this is a concern that is clear to the market facing the company. So how we would replace, so as to say, those assets? Certainly, the comment you made is a fundamental piece in the decision making puzzle that led us to the recommendation of the new CEO, Mr. Leonardo Viena. It's not only that, that without any doubt, his experience that has been accumulated along the years as CCR having a team of evaluating new businesses, both in the primary and secondary markets, namely acquisition. It was all fundamental to the decision we made. Can you ask your second question, please? The second question doesn't have a lot to do with the topic, But I would like to know what are the expectations in terms of growth, both in the primary market, we have this plan for this year and the secondary market with assets that are made available. Thank you. Thank you for your interest. However, I believe this has is not really closely related to the topic of today. So I am at your service, just like our whole IR team, to discuss this topic as we usually do with you. I would like to focus our discussion to what we announced on Friday. No problem. Thank you. The next question comes from Ricardo Auzis from Morgan Stanley. Good afternoon, everyone. This is Josh Milgram from Morgan Stanley. And my first question is I would like to comment on the status of the independent investigation. The committee has reported some conclusions to the council or to the board Or it hasn't decided on the stand yet? Thank you very much for your question. I would like you to understand just like what I did in the previous question, the colleague is also connected in this call. As I said, the purpose of this call is not to provide further comments on the activities carried out by the independent committee. To put you in perspective, the committee reports provide information to the Board of the company, and it's clear since the beginning that there would be a report to the board at the end of the activities, and this is something that hasn't happened yet. Therefore, we have nothing to add yet because we still do not know how the activities stand. And we cannot suggest no type of estimates or deadlines. This is up to the independent committee and not to the company. Perfect. I'm sorry if I lost part of the answers. So I have another question. You said that you're implementing a transfer of assets to the new units of businesses. So could you provide some more light on this process? And how do you see the opportunities in terms of cost? And how can this materialize when we look ahead? This asset transfer process is the following. As we started creating new business areas, as the months passed, it gained a legal entity position. And the final objective is that the assets, depending on the nature of the activities, mobility or highways, whichever the division, as I mentioned, in the different divisions, each one will have assets transferred after all the agreements have been executed. So for example, the subway will go to mobilities for airports, all the assets will go to airports. So because some of them are directly connected to the holding CCR. So I would say this is merely a reconfiguration of the group, which is part of this process that has been going on for about 3 years or 4 years, I would say. And the major objective of the board is to gradually making adjustments to the group design, both in the corporate assets and in the Board organization so that we can be better prepared to the future opportunities. Your next question comes from My first question is related to Leonardo Villarana, when he assumes the CEO position. I would like to know if there was a new movement. He was the better choice at the moment or is he the one chosen to head the companies for the years to come? And if I would like to know if Renato will be at CCR available for this transition period before the end of the month as it was announced that he would step down as CEO? Thank you for the question. I'm going to start from the end of your question. As we announced on Friday, Renato will be with us up to the 31. After that, Leonardo Verma will assume the position and the decision for the company that was taken by the Board has a definite nature. It's not a temporary adjustment, and it's not provisional in any way. The company continues to be very cohesive and this is how the market should understand that the strategy of the company will continue to be the same. No surprises should be expected in terms of business lines or this type of thing. So it's a decision that was made by the Board based on a number of factors and supported by consultancy firms. And the name Leonardo Villena came from a number of evaluations taking into consideration, especially the challenges that I commented on the first question that was asked during this call in relation to the opportunities or the challenges that the company has. In other words, when we look in the medium term for the future. The next question comes from Rafael Penkel from Bradesco BBI. With the change, what can we expect as changes in the strategy of the company? At first, as I just said, the market should not expect any surprises. We're in the area where the company operates. Once a year, we usually hold a positive event circuit on investors, insurance, financing, different markets, different publics with whom the company relates. And in those examples, we disclose clearly the strategy of the company. We believe that the strategy is well defined. It's clear. It has been made some time ago. Our strategy has been the same since its foundation. And longer years. It's natural that our other business lines should have some changes, which are related to the concession concept. And other lines are added such as mobility and also more recently that of airports. But we understand that there is a lack of projects in the market and updates in the infrastructure in Brazil and the sectors where we already operate. So I believe that the company's strategy has always been there, namely to expand its portfolio, considering all those lines of businesses. So the market should not expect any surprise, and we are not planning on any surprises in this new management. The next question comes from Renato Jauperin from Banco DO Brasil. We've been hearing from the news that there is a possibility of having a Bradesco leaving the shareholders' block? And when Leonardo comes in, I was wondering if there is any change in the control block. So is there any possibility of Leonardo leaving the control of CCR? Or is there an expectation of maintaining a land in the block of shareholders? Hello, Renato. Thank you very much for your questions. The indication of Leonardo Vienna for the position of the new CEO of the company. Naturally, it was made by CCR's board, which today comprises 3 groups, Andrade, Kamado Correa As I said before, and I had the opportunity to answer before, This was a definite decision. It has no aspect that we could say that would be provisional or temporary or any term that is only temporary or anything that could describe the situation as such? And the speculation that you mentioned in the beginning of your question about having one of the shareholders leaving because the block is a situation when we would rather not comment on because it's not related to the company. So I don't know how I could relate one thing to the other. We have now closed the question and answer session. I would like to give the floor to Mr. Rastour for his final remarks. On behalf of CCR, I would like to thank you for the time and interest. Please do not hesitate to contact any of us on the IR team if you have any further questions. We are always at the disposal of the market. Have a nice day.